Gary Holt Blog

Proprietary Systemic Differentiation

Posted by Rich Droste on Fri, Feb, 14, 2014 @ 12:02 PM

 

The Entrepreneurs’ Job

  • Discover the opportunitydescribe the image
  • Setting the strategic objectives
  • Developing the organizational strategy
  • Developing the management strategy
  • Developing the people strategy
  • Developing the marketing strategy
  • Developing the sales strategy
  • Developing the system strategy

 

Profit growth happens because the entrepreneurial person constantly seeks better ways to satisfy a worthwhile targeted customer segment.  The entrepreneur’s job is to concentrate, orchestrate and innovate methods for services and products that resolve a customer problem better than everyone else, at a profit. This is the big opportunity.

A key skill is serendipity, research through networking with technicians and prospects.

Other key skills are; system development and planning.

Through a series of development work and meetings the new growth plan accentuates acquired knowledge into a documented, formatted plan.

The entrepreneur's job is to develop a business model that controls what the customer gets based on what the customer needs. The entrepreneur conducts what ifs and if when’s, until the business becomes the product. The manager’s job is establishing order and the technician does the work. In long term business success the entrepreneur, manager and technician need to be balanced. Unfortunately, in most cases, our research shows this isn’t the case and over time the business fails. Experience has proven that businesses must constantly grow profits and growth causes change.

A mature business is one that realizes it cannot continue to run with just managers and technicians but to grow it must employ the entrepreneur. It’s not that managers are not important; it’s that managers become restricted to how many projects or people they manage. It’s not that the technician is not important; it’s that the technician is restricted to how much they can accomplish. The entrepreneur has no restrictions on growth because growth is their job. When the business model is working the entrepreneur turns the business over to management and technicians, then moves on to the next growth project.

Because managers and technicians spend their time working in the business, the growth is restricted to that business. Organic growth is difficult and restricted to current markets, as well as incremental growth which are slow-moving.

The entrepreneur must create a proprietary method of doing business that preferentially differentiates the business from all other competition. The process consists of creativity or innovation, measurement or quantification, meaning how many, or standards and orchestration which is the elimination of choice at the operating level. If it’s not orchestrated, it’s not a proprietary method of doing business that preferentially differentiates the business from the competition. Without preferential differentiation, price becomes the differential and the businesses ability to grow profit declines, savings stop and success disappears.

 

Topics: Proprietary Systemic Differentiation, profit growth, Entrepreneur, preferentially differentiates, concentration, innovation, orchestration